Capital markets

In this third of a three-part 2026 municipal bond outlook series, Market Intelligence analyst Jeff Lipton explains how another year of heavy supply, surging ETF and SMA assets, climate and cyber risk, and growing use of bond insurance will drive muni market structure and strategy for both sell-side and buy-side stakeholders.

Bank of America and Wells Fargo will lead underwriting for $1.8 billion of sales tax and revenue bonds issued through the Kansas Development Finance Authority.

The Nashville Metropolitan Airport Authority is issuing municipal bonds to finance upgrades to an airport bulging at the seams after rapid traffic growth.

Market Intelligence analyst Jeff Lipton, in the second installment of his three-part 2026 outlook series, maps out quality-centric portfolio shifts, barbell and long-end strategies, and sector tilts across hospitals, higher education and housing as record supply and net inflows drive the muni market.

In the first of his three-part 2026 municipal outlook series, Market Intelligence analyst Jeff Lipton forecasts for sub-5% returns, continued demand, possibly more curve steepening as the Fed eases slowly, the economy skirts recession, and AI, tariffs and midterm politics potentially reshaping risks across public finance sectors.

Fitch Ratings downgraded Nebraska's Regional West Health Services by two notches, lowering its long-term issuer default rating to CCC from B-minus.

"The upgrade to Baa3 recognizes the city's fiscal stability under the current casino taxation format," as well as rapid debt defeasance, the rating agency said.

The Alaska IDEA's $75M notes were rated AA-plus by S&P, which cited strong financials.

Moody's Ratings upgraded the Rhode Island Airport Corporation's airport revenue bonds for Providence's T.F. Green International Airport to A3 from Baa1.

Moody's Ratings upgraded the Chicago Transit Authority to Aa3 from A1 Friday, and upgraded the Chicago-area Regional Transportation Authority to Aa2 from Aa3.

The dramatic downgrade projects a default by January 2027 on bonds issued to finance the Miami-to-Orlando passenger train service.

Palomar Health's bond rating remains stuck at junk, but UCSD partnership offers a glimmer of hope.

The well-regarded pediatric hospital system is not alone in facing downgrades amid the myriad challenges healthcare has experienced in recent years.

Both Janney and Huntington are among the top 30 underwriters in the muni market and are neck in neck.

States face broadening credit challenges, and while local governments have shown resilience, school districts are more at risk, S&P Global Ratings said.

King County, Washington plans a $422.2 million competitive sale of limited tax general obligation bonds for Wednesday.

Oakland touts financial turnaround with a $335 million bond sale ahead, despite negative credit outlooks.

The rating agency lowered the outlook to stable on its A-plus rating, saying Pennsylvania didn't do itself many favors in its fiscal 2026 budget season. 

Moody's placed a negative outlook on the higher education earlier this year. 2026 looks even more uncertain, according to a new report from the rating agency.

Moody's cited the airport's "significant improvement in liquidity" and "continued enplanement recovery" in its decision to upgrade the rating to Aa3.